Starbucks said on Wednesday that a compensation charge it faces is expected to wipe out its 2013 tax bill but will not affect the £20m ($30.8m) it intends to pay the UK over two years year.

The global coffee chain restated its accounts after agreeing to pay $2.7bn to settle a contract dispute with Kraft Foods. As a result, a global tax bill of $832m that it had expected to pay for the year to 29 September would instead become a tax credit of $239m. The company has come under fire from politicians and protest groups in the UK for not paying enough tax. Until this year, it had not paid tax in the UK for five years.

In January, David Cameron criticised the firm over its tax policies saying it should "wake up and smell the coffee". In December, Starbucks had pledged to pay the UK Treasury £10m a year for two years, but it has consistently denied any wrongdoing.

Kraft and Starbucks have been in dispute since 2011 when the coffee company prematurely scrapped a contract that permitted the food company to sell bags of Starbucks-branded coffee in grocery shops. The deal was first struck in 1998. Starbucks said on Tuesday that an arbitrator had ordered it to pay Kraft $2.23bn in damages plus $557m in interest and other fees to end the dispute.

Starbucks is booking the compensation payment in the year to the end of September andreporting net income of $8m after the charge, down from the previously reported net income of $1.7bn for the year. It said: "Starbucks does not have any pre-tax income as a result of the arbitration award; therefore we do not have a tax obligation this year. For tax purposes, the payment is deductible. We are still evaluating the ruling to determine the time period for deductibility."

• This article was amended on 14 November 2013. The earlier version suggested that Starbucks had pledged to pay £10m to the UK Treasury after David Cameron said in January that it should "wake up and smell the coffee". Starbucks pledge, which was actually to pay £10m a year for two years, was made in December, after protests about its tax policies but before the prime minister's intervention.